Lodging Econometrics (LE) released the latest hotel development for the New York market before the NYU International Hospitality Industry Investment Conference (NYU Conference).
In the Q1 2024 LE Market Trend Report for New York, analysts report the market had 78 projects/13,549 rooms in the hotel construction pipeline, the 10th largest pipeline by projects of any market in the United States.
Of the top 50 markets in the United States, the New York market led with the greatest number of hotels presently under construction standing at 47 projects/7,655 rooms. Projects scheduled to start construction in the next 12 months total 8 projects/1,079 rooms, and those in early planning account for 23 projects/4,815 rooms.
Within the New York market, the three market tracts (submarkets) with the largest hotel construction pipelines are the New York City area, which includes Brooklyn East, the Bronx, and Staten Island, with 25 projects/2,096 rooms; the Midtown South area with 11 projects/2,535 rooms; and the Midtown West/Times Square area with 10 projects/4,131 rooms. These three market tracts combined account for 59 percent of the projects and 65 percent of the rooms in the market’s total construction pipeline.
The market tracts with the most projects presently under construction are the New York City area with 16 projects/1,261 rooms, Midtown South with 7 projects/1,515 rooms, and the JFK airport/Jamaica area with 7 projects/851 rooms.
During the first quarter of 2024, the New York market outpaced all others in the United States with the highest number of new projects added; with 12 projects totaling 1,660 rooms. The New York market also was the leading market for construction starting in Q1 2024.
At the end of Q1 2024, the market also had a noteworthy amount of conversion and renovation activity, ranking as the third-largest market in the United States by project volume for a combined renovation and conversion total of 30 projects/8,020 rooms.
In Q1 2024, the New York market ranked seventh among the top 50 markets in the United States for newly opened hotels. Looking ahead, forecasts indicate that it will lead the nation in hotel openings throughout the remaining three quarters of the year. LE’s total forecast for new hotel openings in the New York market in 2024 is 26 projects/2,910 rooms. In 2025, the market will rank sixth in forecasted new hotel openings, with 17 projects/2,409 rooms.
